Impact Of Employee Reaction And Turnover Rates On The Successful Implementation Of An Information System: A Game Theory Approach

Abstract

A perusal of the literature on Management Information Systems reveals 2 important issues that the field continues to investigate. First is the role of user reaction (resistance or acceptance) in the successful implementation and working of a new information system (IS). Second is the issue of the continued high rate of turnover of employees in MIS careers. These two branches establish two facts -that user reaction plays a crucial role in determining system success, and that a high rate of turnover in careers is a problem for any organization. In this paper, I ask whether these 2 issues are related. Using game theory, I develop a theoretical framework to assess whether employee turnover rates interact with employee reaction to influence the successful implementation of a new IS in any firm. In other words, if there is a high turnover rate, does this increase the users’ resistance to the implementation of a new information system? The answer depends on several factors such as the initial cost of implementation, the rate of turnover, relative compensation of the players, and the personal rates of discounts of the players.